IM W 6 & 7
49 flashcards · Other · by Daniel F.
value delivery network
network composed of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system in delivering customer value
marketing (or distribution) channel
a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or usiness user
channel levels
the layers of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. direct marketing channel and indirect marketing
channel conflict and 2 types
Disagreements among marketing channel members on goals roles, and rewards: Horizontal conflict occurs among firms at the same level of the channel. Vertical conflict occurs between different levels of the same channel and is more common.
conventional distribution channel
one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole
vertical marketing system (VMS) and 3 types
consists of producers, wholesalers, and retailers acting as one unified system Corporate VMS - a vertical marketing system that combines successive stages of production and distribution under single ownership, channel leadership is established through common ownership. Contractual VMS - a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. The franchise organization is the most common type of contractual relati…
horizontal marketing system
two or more companies at one level join together to follow a new marketing opportunity
multichannel distribution system
a single firm sets up two or more marketing channels to reach one or more customer segments
disintermediation
marketing channel intermediaries are cut out by product or service producers or traditional resellers are displaced by radical new types of intermediaries
Marketing channel design
designing effective marketing channels by Analyzing consumer needs. Setting channel objectives Identifying major channel alternatives. Evaluating those alternatives.
Marketing channel management
Selecting channel members. Managing and motivating channel members. Evaluating channel members.
Number of Marketing Intermediaries
Intensive distribution - Stocking the product in as many outlets as possible. Exclusive distribution - Giving a limited number of dealers the exclusive right to distribute the company's products in their territories. Selective distribution - The use of more than one but fewer than all of the intermediaries that are willing to carry the company's products.
Marketing logistics
planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
Supply chain management
managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers
Pros of focusing on logistics
Companies can gain a powerful competitive advantage by using improved logistics to give customer better service or lower prices. Improved logistics can yield tremendous cost savings to both a company and its customers. The explosion in product variety has created a new for improved logistics management. More than almost any other marketing function, logistics affects the environment and a firm's environmental sustainability efforts.
major logistics functions of a company
Warehousing. Inventory management. Transportation. Logistics information management.
integrated logistics management
emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system
three entry-modes
Exporting by selling goods produced in the company's home country, often with little modification. Joint venturing by joining with foreign companies to produce or market a product or service. Licensing through developing an agreement with a licensee in the foreign market. Contract manufacturing in which a company contracts with manufacturers in a foreign market to produce its product or provide a service. Management contracting is a joint venture in which the domestic firm supplies the manageme…
standardized global marketing
the same marketing strategy and mix in all of the company’s international markets is used
adapted global marketing
adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return
integrated marketing communication
Under this concept, the company carefully integrates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
content marketing
creating inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels
Elements off communication
Sender, the party sending the message to another party. Encoding, the process of putting thought into symbolic form. Message, the set of symbols that the sender transmits. Media, the communication channels through which the message moves from the sender to the receiver. Decoding, the process by which the receiver assigns meaning to the symbols encoded. Receiver, the party receiving the message sent by another party. Response, the reaction of the receiver after being exposed to the message. Feed…
2 promotion mix strategies
push strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers. pull strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.
Major Advertising Decisions
functions performed by the members of the marketing channel
to complete transactions Information. Gathering and distributing information about consumers, producers, and other actors and forces in the marketing environment needed for planning and aiding exchange. Promotion. Developing and spreading persuasive communications about an offer. Contact. Finding and engaging customers and prospective buyers. Matching. Shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. Negotiation. Reaching…
third-party logistics providers
Do the grunt work, make use of their already existing systems
five strategies for adapting a product and marketing communication strategies to global markets:
Straight product extension, - marketing a product in a foreign market without making any changes to the product. Product adaptation - adapting a product to meet local conditions or wants in foreign markets. Product invention - creating new products or services for foreign markets. Dual adaptation - both the product and communication strategy are adapted. Product invention - a whole new product is developed.
communication adaptation
companies follow a global communication strategy of fully adapting advertising messages to local markets
promotion mix (or marketing communication mix) 5 Promotion Tools
blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships: Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion includes short-term incentives to encourage the purchase or sale of a product or a service. Personal selling is the personal presentation by the firm's sales force for the purpose of engaging customers, making sales, and building cu…
6 steps in developing an effective integrated communications and promotion program
Identifying the target audience Determining the communication objectives. The target audience may be in any of six buyer-readiness stages: Awareness. Knowledge. Liking. Conviction. Purchase. Designing a message, including message structure and format Choosing communication channels and media Personal communication channels Word-of-mouth influence - the word of people you trust Buzz marketing - the word of influences non-personal communication channels Selecting the message source Collecting fee…
set the total budget for advertising 4 methods
affordable method - the promotion budget is set at the level management thinks the company can afford. percentage-of-sales method - the promotion budget is set at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. competitive-parity method - the promotion budget is set to match competitor's outlays. objective-and-task method - the promotion budget is developed by defining the specific promotion objectives, determining the tasks needed to achieve thes…
Advertising objectives
specific communication task to be accomplished with a specific target audience during a specific period of time purpose of ad:
advertising strategy
creating advertising messages and selecting advertising media
Creating the Advertising Message and Brand Content
breaking through the clutter Madison & Vine - merge advertising and entertainment native advertising - merge advertising and content creative concept - compelling big idea that will bring an advertising message strategy to life in a distinctive and memorable way choose execution styles: slice of life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise, scientific evidence, and testimonial evidence or endorsement involve consumer-generated content
Selecting advertising media
Determining reach, frequency, impact, and engagement. Choosing among major media types. Selecting specific media vehicles. Choosing media timing.
return on advertising investment
net return on advertising investment divided by the costs of the advertising investment
consider for advertising
advertising agency - a marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs International advertising decisions about whether they should modify their advertisements per country
Public relations
Press relations or press agency. Product and brand publicity. Public affairs. Lobbying. Investor relations. Development.
Personal selling
personal presentations by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships
salesperson
individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building
salesperson-owned loyalty
the salesperson is the company
managing sales force
sales force structure
territorial sales force structure - salesperson is assigned to an exclusive geographic area and sells the company’s full line of products or services to all customers in that territory product sales force structure - salespeople specialize in selling only a portion of the company’s products or lines customer (or market) sales force structure - salespeople specialize in selling only to certain customers or industries
determine Sales Force Size
workload approach
team selling
teams of people from sales, marketing, engineering, finance, technical support, and even upper management are used to service large, complex accounts
personal selling process steps
Prospecting involves a salesperson or company identifying qualified potential customers. Preapproach where a salesperson learns as much as possible about a prospective customer before making a sales call. Approach is the step where a salesperson meets the customer for the first time. Presentation involves the salesperson telling the "value story" to the buyer, showing how the company's offer solves the customer's problems. Handling objections is where a salesperson seeks out, clarifies, and ove…
Sales promotion
short-term incentives to encourage the purchase or sale of a product or service Customer promotions, which targets the final buyers, here the objective is to urge short-term customer buying or to boost customer-brand engagement. Trade promotions, which targets retailers and wholesalers, here the objective is getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space. Business promotions, which targets business customers,…
Stages in the customer journey